Tuesday, December 21, 2010

TURNING POINTS FOR 22.12.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :
In today's trading Nifty Future opened firm and traded with high of 6022 and low of 5971. The day's trading closed at 6012 - near the high of the day. While the closing has been good, one must factor in that it was largely due to spurt in Reliance in the last one hour of trading. Otherwise, after a firm opening Nifty Future remained in 25 points range for better part of the day. Please note that for Bank Nifty Future, 11655 remains a critical level to decide for further upside.
While one would like to believe that there is more upside, we need to keep in mind that we are close to the resistance level of 6038 (mid point of 6349 & 5727) and thereafter 6100 which can act as a strong hurdle. In view of the same, I feel the risk reward ratio for long positions at higher levels is adverse and hence it is advisable to avoid fresh long positions. Existing long positions should be trailed with stop loss of 5960.
Short positions should be taken below 5960 with stop loss of 6000. On the down side, Nifty Future will find support at 5940 and 5900.
Put Call Ratio of Index Options remained almost unchanged at 0.98 as against 0.94 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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